Surrey, UK: Social enterprise and charity, Mytime Active, today announces it will realise projected financial savings of £500,000 over the next three years, as a result of a phased procurement review, which has been managed by Pelican, the procurement and supply chain management specialist.
To date, Mytime Active has saved 11% of its annual food and beverage budget and is forecasting further savings over the next three years, as a result of the systems, processes and service level agreements that Pelican has put in place across the organisation and with suppliers.
Mytime Active operates over 10 sports and community-based venues in addition to 19 golf centres located across the South and Midlands. As a social enterprise all profits are reinvested to develop new or improve existing services, therefore creating a transparent and consistent procurement process across the business has enabled the group to make vital savings that can be reinvested.
Craig Senior, group food and beverage manager of Mytime Active said: “When I joined the company 21 months ago, it was clear we needed to take greater control of our costs and suppliers: my main aim was to apply consistency across all purchasing. Pelican was recommended to me and, having contacted the team, I believed in what they were offering. We’ve already witnessed savings of 11 per cent, in addition to a number of efficiency savings that have resulted from the systems that Pelican has put in place.”
Through the partnership, Mytime Active has integrated Pelican’s Purchasing Intelligence (Pi) cloud-based procurement tool, which provides complete visibility, management and control over purchasing spend, budgets, stock valuation and supplier invoices via a secure online portal.
Explains Craig: “Before using Pelican’s Pi system, there was some hesitation as it meant operational changes in how we produce financial reporting. We therefore trialled Pi in our busiest site and really put it to the test. The feedback received was phenomenal: I have calculated that working with Pelican Pi reduces manpower by 80% as the need to manually handle invoices and financial reporting has all but gone. Now, for the first time in ten years, we benefit from real-time, consistent, polished reports with complete visibility of budgets and stocks. It gives me the consistency I have been looking for, with the ability to manage suppliers, and ultimately make savings. I have projected that we will save at least £500,000 over the next three years by working with Pelican and using the Pi system.”
Since the partnership commenced in May 2012, Pelican has supported Mytime Active with a number of supplier tenders, in addition to managing food tastings, resolving delivery issues, providing marketing support and liaising and negotiating with suppliers. 84 per cent of food and beverage items for the group are now purchased from the approved product list, delivering better margins as a result of the larger volumes being purchased.
Shabaz Mohammed, Managing Director of Pelican said: “When we were originally approached by Mytime Active to review the food and beverage procurement, it was clear that we would be able to implement a number of improvements as, at the time, there was a limited centralised approach. By working in tandem with Craig and his team, we have enabled them to not only realise financial savings of £500,000 over the next three years, but have provided clear, centralised visibility of all budgets, expenditure and stock.”
For further information regarding Pelican’s range of procurement services, telephone 01252 705 222 or visit www.pelicanbuying.co.uk